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Why Is Barrick Gold (GOLD) Down 1.4% Since Last Earnings Report?
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It has been about a month since the last earnings report for Barrick Gold (GOLD - Free Report) . Shares have lost about 1.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Barrick Gold due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Barrick's Q1 Earnings Surpass Estimates, Sales Lag
Barrick recorded net earnings (on a reported basis) of $538 million or 30 cents per share in first-quarter 2021, up from $400 million or 22 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share surged 81% year over year to 29 cents. The figure also beat the Zacks Consensus Estimate of 26 cents.
Barrick recorded total sales of $2,956 million, up 8.6% year over year. However, the figure missed the Zacks Consensus Estimate of $3,055.1 million.
Operational Highlights
Total gold production amounted to around 1.1 million ounces in the first quarter, down 12% year over year from 1.25 million ounces. Average realized price of gold was $1,777 per ounce in the quarter, up 12% year over year.
Cost of sales increased 5.2% year over year to $1,073 per ounce. AISC moved up around 6.7% year over year to $1,018 per ounce in the quarter.
Copper production declined 19% year over year to 93 million pounds. Average realized copper price was $4.12 per pound, up 85% year over year.
Financial Position
At the end of the quarter, Barrick had cash and cash equivalents of $5,672 million, up 70% year over year. The company’s long-term debt was $5,140 million at the end of the quarter, down from $5,150 million in the previous-year quarter.
Net cash provided by operating activities surged 46.5% year over year to $1,302 million.
Guidance
For 2021, Barrick anticipates attributable gold production in the range of 4.4-4.7 million ounces. AISC is expected in the range of $970-$1,020 per ounce and cost of sales is expected in the range of $1,020-$1,070 per ounce.
The company also expects copper production in the range of 410-460 million pounds at AISC of $2.00-$2.20 per pound and cost of sales of $1.90-$2.10 per pound.
Capital expenditures are projected between $1,800 million and $2,100 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Barrick Gold has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision has been net zero. Notably, Barrick Gold has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Barrick Gold (GOLD) Down 1.4% Since Last Earnings Report?
It has been about a month since the last earnings report for Barrick Gold (GOLD - Free Report) . Shares have lost about 1.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Barrick Gold due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Barrick's Q1 Earnings Surpass Estimates, Sales Lag
Barrick recorded net earnings (on a reported basis) of $538 million or 30 cents per share in first-quarter 2021, up from $400 million or 22 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share surged 81% year over year to 29 cents. The figure also beat the Zacks Consensus Estimate of 26 cents.
Barrick recorded total sales of $2,956 million, up 8.6% year over year. However, the figure missed the Zacks Consensus Estimate of $3,055.1 million.
Operational Highlights
Total gold production amounted to around 1.1 million ounces in the first quarter, down 12% year over year from 1.25 million ounces. Average realized price of gold was $1,777 per ounce in the quarter, up 12% year over year.
Cost of sales increased 5.2% year over year to $1,073 per ounce. AISC moved up around 6.7% year over year to $1,018 per ounce in the quarter.
Copper production declined 19% year over year to 93 million pounds. Average realized copper price was $4.12 per pound, up 85% year over year.
Financial Position
At the end of the quarter, Barrick had cash and cash equivalents of $5,672 million, up 70% year over year. The company’s long-term debt was $5,140 million at the end of the quarter, down from $5,150 million in the previous-year quarter.
Net cash provided by operating activities surged 46.5% year over year to $1,302 million.
Guidance
For 2021, Barrick anticipates attributable gold production in the range of 4.4-4.7 million ounces. AISC is expected in the range of $970-$1,020 per ounce and cost of sales is expected in the range of $1,020-$1,070 per ounce.
The company also expects copper production in the range of 410-460 million pounds at AISC of $2.00-$2.20 per pound and cost of sales of $1.90-$2.10 per pound.
Capital expenditures are projected between $1,800 million and $2,100 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Barrick Gold has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision has been net zero. Notably, Barrick Gold has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.